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HomeMy WebLinkAboutOrd 1051 - Foster Golf Course Acquisition - Issuance and Sale of Bonds COUNCIL ACTION 4. MEETING I DATE I AGEADA i ACTION TYPE ITEM C /A 13 g go1.36IJ11 P CITY OF TUKWILA, WASHINGTON 1 1 1 ORDINANCE NO. 1051 1 1 AN ORDINANCE of the City of Tukwila, Washington, providing for the issuance, specifying the maturities and maximum effective interest rate, and fixing the form of $1,850,000 par value of "Unlimited General Obligation Bonds, 1978," authorized by the qualified voters of the City at a special election held on November 2, 1976, in conjunction with the general state election held on the same date, pursuant to Ordinance No. 987 of the City Council passed September 7, 1976; creating a special bond redemption fund and a special acquisition fund; providing for the issuance of interest bearing warrants pending the deposit of bond proceeds in such acquisition fund; and providing for the sale of such bonds. THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN, as follows: Section 1. The City of Tukwila, Washington (hereinafter called the "City shall presently issue and sell the total $1,850,000 par value of negotiable general obligation bonds authorized by the qualified voters of the City at a special election held on November 2, 1976, in conjunction with the general state election held on the same date, pursuant to Ordinance No. 987 of the City Council passed September 7, 1976, for the purpose of paying a part of the cost of acquiring certain real properties known as the "Foster Golf Links" for recreational purposes as authorized by said Ordinance No. 987. The bonds shall be dated April 1, 1978; shall be in denominations of $5,000 each; shall be numbered from 1 to 370, inclusive; and shall bear interest at a rate or rates not to exceed an effective rate of 8% per annum, payable on April 1, 1979, and semiannually thereafter on each succeeding October 1 and April 1, to be evidenced by interest coupons to be attached to the bonds representing interest to maturity, with full obligation on the part of the City to pay interest at the bond rate or rates from and after maturity until said bonds, both principal and interest, are paid in full. Both principal and interest are to be paid in lawful money of the United States of America at the office of the Treasurer of the City, or, at the option of the holder, at either fiscal agency of the State of Washington in the Cities of Seattle, Washington, or New York, New York. The Bonds shall be payable serially over a period of from two to twenty years from the date of issue and shall mature in order of their numbers (based upon an assumed interest rate of 5 -1/2% per annum) as follows: Bond Numbers (Inclusive) Amounts Maturities 1 to 11 55,000 April 1, 1980 12 to 23 60,000 April 1, 1981 24 to 36 65,000 April 1, 1982 37 to 49 65,000 April 1, 1983 50 to 63 70,000 April 1, 1984 64 to 78 75,000 April 1, 1985 79 to 94 80,000 April 1, 1986 95 to 111 85,000 April 1, 1987 112 to 129 90,000 April 1, 1988 130 to 148 95,000 April 1, 1989 149 to 168 100,000 April 1, 1990 169 to 189 105,000 April 1, 1991 190 to 211 110,000 April 1, 1992 212 to 234 115,000 April 1, 1993 235 to 258 120,000 April 1, 1994 259 to 284 130,000 April 1, 1995 285 to 311 135,00Q April 1, 1996 312 to 340 145,000 April 1, 1997 341 to 370 150,000 April 1, 1998 Section 2. The City reserves the right to redeem any or all of the bonds prior to their stated maturity dates as a whole, or in part in inverse numerical order, on April 1, 1988, or on any semiannual interest payment date thereafter, at par plus accrued interest to date of redemption. Notice of such intended redemption shall be published in the official newspaper of the City at least once not less than thirty nor more than forty -five days prior to the call date, and a copy of such notice shall be mailed within the same period to the principal underwriter who purchases the bonds. In addition, such redemption notice shall also be sent to Moody's Investors Service, Inc., and Standard Poor's Corporation, at their offices in New York, New -2- York, but the mailing of such notice to such corporations shall not be a condition precedent to the redemption of such bonds. Interest on any bonds so called for redemption shall cease on such call date upon payment of the redemption price into the bond redemption fund for such bonds. Section 3. The City hereby irrevocably pledges itself to levy taxes annually, without limitation as to rate or amount, on all property in the City subject to taxation in an amount sufficient to pay the principal of and interest on the bonds as the same shall become due, and the full faith, credit and resources of the City are hereby irrevocably pledged for the payment of the principal of and interest on such bonds. Section 4. The bonds shall be designated "Unlimited General Obligation Bonds, 1978," and shall be in substantially the following form; No. $5,000.00 UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF TUKWILA UNLIMITED GENERAL OBLIGATION BOND, 1978 0 The City of Tukwila, State of Washington (hereinafter called the "City for value received hereby promises to pay to the bearer on the FIRST DAY OF APRIL, 19 the principal sum of FIVE THOUSAND DOLLARS together with interest thereon at the rate of o per annum, until fully paid, payable on April 1, 1979, and semiannually thereafter on each succeeding October 1 and April 1, with interest to maturity being evidenced by and payable upon the presentation and surrender of the attached interest coupons as they severally become due, with full obligation on the part of the City to pay interest at the same rate from and after the maturity date, in the absence of coupons, until this bond with interest is paid in full. This bond is payable, both principal and interest, in lawful money of the United States of America at the office of the Finance Director of the City, or, at the option of the holder, at either fiscal agency of the State of Washington in the Cities of Seattle, Washington, or New York, New York. -3- This bond is one of an issue of $1,850,000.00 of bonds of like date, tenor and effect, except as to maturities (and interest rates if more than one interest rate is bid), and is issued by the City pursuant to a special election authorizing the same for strictly municipal capital purposes, other than the replacement of equipment, to -wit, for the purpose of providing a part of the funds to acquire by purchase certain real property within the City consisting of approximately 73 acres, including the 18 -hole golf course known as the "Foster Golf Links," together with the clubhouse and buildings located thereon, all as provided in Ordinance No. 987 passed and approved September 7, 1976, and Ordinance No. passed and approved March 6, 1978, and is issued in full compliance with the ordinances of the City and the laws and Constitution of the State of Washington. The City reserves the right to redeem any or all of the bonds prior to their stated maturity dates as a whole, or in part in inverse numerical order, on April 1, 1988, or on any semiannual interest payment date thereafter, at par plus accrued interest to date of redemption. Notice of such intended redemption shall be pub- lished in the official newspaper of the City at least once not less than thirty nor more than forty -five days prior to the call date, and a copy of such notice shall be mailed within the same period to [the original purchaser or the account manager of the underwriters who purchase the bonds]. In addition, such redemption notice shall also be sent to Moody's Investors Service, Inc., and Standard Poor's Corporation, at their offices in New York, New York, but the mailing of such notice to such corporations shall not be a condition precedent to the redemption of such bonds. Interest on any bonds so called for redemption shall cease on such call date upon payment of the redemption price into the bond redemption fund. The City hereby irrevocably pledges itself to levy taxes annually, without limitation as to rate or amount, on all property in the City subject to taxation in an amount sufficient to pay the principal of and interest on the bonds. It is hereby certified that all acts, conditions and things required to be done precedent to and in the issuance of this bond have been done, have happened and have been performed as required by law, and that the total indebtedness of the City, including this bond issue, does not exceed any constitutional or statutory limitations. IN WITNESS WHEREOF, the City has caused this bond to be signed by the facsimile signature of its Mayor and attested by the manual signature of its City Clerk and its corporate seal to be hereto affixed and the interest coupons attached to be signed by the facsimile signatures of said officials this first day of April, 1978. CITY OF TUKWILA, WASHINGTON By (facsimile signature) Mayor -4 ATTEST: City Clerk The form of the interest coupons shall be substantially as follows: Coupon No. (Unless the bond referred to below has been previously redeemed) On the FIRST DAY OF (APRIL)(OCTOBER), 19 the CITY OF TUKWILA, WASHINGTON, upon presentation and surrender of this coupon will pay to the bearer at the office of the Finance Director, or, at the option of the holder, at either fiscal agency of the State of Washington in the Cities of Seattle, Washington, or New York, New York, the amount shown hereon in lawful money of the United States of America, said sum being the interest due that date on its "Unlimited General Obligation Bond, 1978," dated April 1, 1978, and numbered CITY OF TUKWILA, WASHINGTON By (facsimile signature) Mayor ATTEST: (facsimile signature) City Clerk Section 5. The bonds shall be printed or lithographed on good bond paper and shall be signed by the facsimile signature of the Mayor and attested by the manual signature of the City Clerk of the City under the seal of the City, and the coupons shall bear the facsimile signatures of the Mayor and the City Clerk. Section 6. There is hereby created and established in the office of the Finance Director a special fund to be known and designated as the "Unlimited General Obligation Bond Fund, 1978," for the payment of the principal of and interest on the bonds, into which fund shall be paid the accrued interest received from the sale of the bonds. All taxes collected for the payment of the principal of and interest on the bonds shall be deposited in the "Unlimited General Obligation Bond Fund, 1978." There is also hereby created and established in the office of the Finance Director another special fund to be known -5- and designated as the "Foster Golf Links Acquisition Fund." The principal proceeds received from the sale of the bonds, together with the principal proceeds received from the sale of the "Limited General Obligation Bonds, 1978," authorized to be issued by Ordinance No. /D SZ concurrently with the bonds authorized herein, shall be deposited in the "Foster Golf Links Acquisition Fund," and expended for the purposes as provided in Ordinance No. 987 and herein, including the costs of the issuance and sale of the bonds of both issues. Pending the receipt and deposit into the "Foster Golf Links Acquisition Fund" of such bond proceeds, warrants may be issued when needed drawn on that acquisition fund in payment for the aforesaid acquisition costs when duly authorized, which warrants shall be presented to the Finance Directs marked "not paid for want of funds" and shall bear interest at such rate from date of presentment until the date they are called for payment as may be negotiated between the Finance Director and a banking institution agreeing to make a market for such warrants. Such warrants shall be paid in full out of the bond proceeds to be deposited into that acquisition fund. Section 7. The City hereby covenants that it will not make any use of the proceeds of the sale of the bonds or any other funds of the City which may be deemed to be proceeds of such bonds pursuant to Section 103(c) (2) of the Internal Revenue Code, as amended, and the applicable Regulations thereunder which, if such use had been reasonably expected on the date of delivery of the bonds to the initial purchaser thereof, would have caused such bonds to be "arbitrage bonds" within the meaning of that section and those regulations. Section 8. The bonds shall be sold for cash at public sale for not less than par, plus accrued interest, upon sealed bids to be received at the office of the City Clerk, up to the day and hour stated in the Notice of Bond Sale hereinafter directed to be given. -6- Notice calling for bids to purchase the bonds shall be published once a week for four consecutive weeks in the official newspaper of the City and a short form of such notice shall also be published in The Daily Journal of Commerce of Seattle, Washington, at least ten days before the bid opening date. Such notice shall specify that bids for the purchase of the bonds shall be received by the City Clerk of the City in such official's office in the City Hall, 14475 59th Avenue South, Tukwila, Washington, on April 3, 1978, up to 2 :00 o'clock p.m. (PST), at which time all bids for the purchase of the bonds will be publicly opened and read and such bids will be considered and an award made by the City Council at its regular meeting to be held in the Council Chambers in the City Hall on the same day beginning at 7 :00 o'clock p.m. (PST). A copy of the notice shall, at least three weeks prior to the date fixed for sale, be mailed to the State Finance Committee, Olympia, Washington. Bids shall be invited for the purchase of the bonds with fixed maturities in accordance with the schedule specified in Section 1 hereof. The notice shall specify the maximum effective rate of interest the bonds shall bear, to-wit, 8% per annum, and shall require bidders to submit a bid specifying: (a) The lowest rate or rates of interest and premium, if any, above par at which the bidder will purchase the bonds; or (b) The lowest rate or rates of interest at which the bidder will purchase the bonds at par. Coupon rates shall be in multiples of 1/8 of 1 /10 of 1 or both. No more than one rate of interest may be fixed for any one maturity. Only one coupon will be attached to each bond for each installment of interest thereon, and bids providing for additional or supplemental coupons will be rejected. The maximum differential between the lowest and highest coupon rates named in any bid shall not exceed 2 -7- For the purpose of comparing the bids only, the coupon rates bid being controlling, each bid shall state the total interest cost over the life of the bonds and the net effective interest rate of the bid. The bonds shall be sold to the bidder making the best bid, subject to the right of the City Council of the City to reject any and all bids and to readvertise the bonds for sale in the manner provided by law, and no bid for less than all of the bonds shall be considered. The City reserves the right to waive any irregularity or informality in any bid or in the bidding process. All bids shall be sealed and, except the bid of the State of Washington, if one is received, shall be accompanied by a deposit of $92,500.00. The deposit shall be either by certified or cashier's check made payable to the Finance Director of the City and shall be promptly returned if the bid is not accepted. If the bonds are ready for delivery and the successful bidder shall fail and neglect to complete the purchase of the bonds within forty days following the acceptance of its bid, the amount of its deposit shall be for- feited to the City and in that event the City Council may accept the bid of the one making the next best bid. If there be two or more equal bids for not less than par plus accrued interest and such bids are the best bids received, the City Council shall determine by lot which bid will be accepted. The bonds will be delivered to the successful bidder at the office of the Finance Director of the City or in the City of Seattle, at the City's expense, or at such other Finance place as the Director and the successful bidder may mutually agree upon at the purchaser's expense. A no- litigation certificate in the usual form will be included in the closing papers. Any bid presented after the hour specified for the receipt of bids will not be received and any bid not accompanied by the required bid deposit at the time of opening such bid will not be read or considered. -8- CUSIP identification numbers may be printed upon the bonds, but neither the failure to print such number on any bond nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for the bonds in accordance with the terms of the purchase contract. Expenses related to the printing of CUSIP numbers on the bonds shall be paid for by the issuer, except that the CUSIP Service Bureau charge for the assignment of the numbers shall be the responsibility of and shall be paid for by the purchaser. The City Clerk of the City shall be and is hereby authorized and directed to publish notice for the purchase of the bonds in the manner required by law in accordance with.the provisions of this section. Such notice shall provide that the City will cause the bonds to be printed and lithographed and signed and will furnish the approving legal opinion of Messrs. Roberts, Shefelman, Lawrence, Gay Moch, municipal bond counsel of Seattle, Washington, covering the bonds without cost to the purchaser, said opinion also being printed on each bond. Such bond opinion shall state that bond counsel expresses no opinion on the completeness or accuracy of any official statement, offering circular or other sales material relating to the issuance of the bonds prepared by the City or its financial consultant or otherwise used in connection with such bonds. Such notice shall also provide that further information regarding the details of such bonds may be received upon request made to the City Clerk, or to Foster Marshall, Inc., the City's financial consultant, 205 Columbia Street, Seattle, Washington. -9- PASSED by the City Council of the City of Tukwila, Washington, at a regular open public meeting thereof, and APPROVED by the Mayor this 6th day of March, 1978. eio. ~v e e. Mayor ATTEST: �i 2�r/ City Clerk AP ROVED AS TO FORM: Lawrence E Hard City Attorney /4 Published: 4 9 Zr -10-